<PAGE> 1
SEMIANNUAL REPORT / JUNE 30 1999
AIM GLOBAL TRENDS FUND
[COVER IMAGE]
[AIM LOGO APPEARS HERE]
<PAGE> 2
[Cover Image]
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VARIIERTE RECHTECKE BY WASSILY KANDINSKY (1866-1944, RUSSIAN)
CONSIDERED THE FOUNDER OF ABSTRACT ART, WASSILY KANDINSKY
EVOKES A GEOMETRIC RHYTHM IN HIS PAINTING, TRANSLATED FROM
GERMAN AS "VARIED RECTANGLES." DURING THE 1920S, KANDINSKY
EXPLORED THE POWER OF COLOR AND SHAPES. THE LINES AND FORMS IN
THIS PAINTING ELICIT UNIVERSAL SYMBOLS OF GROWTH SUCH AS ROADS,
GRIDS AND BRIDGES. ITS RIGHT ANGLES BRING A SENSE OF ORDER AND
STRUCTURE TO THE COMPOSITION.
-------------------------------------
AIM Global Trends Fund is for shareholders who seek long-term growth of capital
through a blend of the six AIM global theme funds. The mix gives investors broad
diversification across industry groups throughout the world.
ABOUT FUND PERFORMANCE AND PORTFOLIO DATA THROUGHOUT THIS REPORT:
o AIM Global Trends Fund (formerly GT Global New Dimension Fund) performance
figures are historical and reflect reinvestment of all distributions and
changes in net asset value.
o When sales charges are included in performance figures, Class A share
performance reflects the maximum 4.75% sales charge. Class B and Class C
share performance reflects the applicable contingent deferred sales charge
(CDSC) for the period involved. The CDSC on Class B shares declines from 5%
beginning at the time of purchase to 0% at the beginning of the seventh
year. The CDSC on Class C shares is 1% for the first year after purchase.
The performance of the fund's Class B, C and Advisor Class shares will
differ from that of Class A shares due to differences in sales charge
structure and expenses.
o The fund's investment return and principal value will fluctuate, so an
investor's shares, when redeemed, may be worth more or less than their
original cost.
o International investing presents certain risks not associated with investing
solely in the United States. These include risks relating to fluctuations in
the value of the U.S. dollar relative to the values of other currencies, the
custody arrangements made for the fund's foreign holdings, differences in
accounting, political risks and the lesser degree of public information
required to be provided by non-U.S. companies.
ABOUT INDEXES AND OTHER PERFORMANCE BENCHMARKS CITED IN THIS REPORT:
o The MSCI All Countries World Index is a group of unmanaged global securities
traded on 47 markets in developed and emerging countries. The index is
tracked by Morgan Stanley Capital International.
o The Dow Jones Industrial Average (the Dow) is an unmanaged composite of the
performance of 30 large-company stocks.
o An investment cannot be made in any index listed. Unless otherwise
indicated, index results include reinvested dividends and do not reflect
sales charges.
===============================================================================
AVERAGE ANNUAL TOTAL RETURNS
As of 6/30/99, including sales charges
CLASS A SHARES
Inception (9/15/97) 8.36%
1 year 6.43*
*11.73% excluding sales charges
CLASS B SHARES
Inception (9/15/97) 8.71%
1 year 6.25**
**11.25% excluding CDSC
CLASS C SHARES
Inception (1/2/98) 15.37%
1 year 10.16***
***11.16% excluding sales charges
ADVISOR CLASS SHARES (no shares charge)****
Inception (9/15/97) 11.90%
1 year 12.33
****Advisor Class shares were closed to new investors on 3/1/99.
===============================================================================
MARKET VOLATILITY CAN SIGNIFICANTLY AFFECT SHORT-TERM PERFORMANCE. RESULTS OF AN
INVESTMENT MADE TODAY MAY DIFFER SUBSTANTIALLY FROM THE HISTORICAL PERFORMANCE
SHOWN.
AN INVESTMENT IN THE FUND IS NOT A DEPOSIT OF A BANK AND IS NOT INSURED OR
GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER GOVERNMENT
AGENCY. THERE IS A RISK THAT YOU COULD LOSE SOME OR ALL OF YOUR MONEY.
This report may be distributed only to current shareholders or to persons
who have received a current prospectus of the fund.
AIM GLOBAL TRENDS FUND
<PAGE> 3
SEMIANNUAL REPORT / CHAIRMAN'S LETTER
Dear Fellow Shareholder:
With only several months remaining in 1999, the question on
[PHOTO OF many of your minds may be, "How will the year 2000 computer
Charles T. issue affect AIM and my investments?" We would like you to
Bauer, feel comfortable. We are pleased to be able to report to you
Chairman of that as of June 1999 we achieved a major milestone toward
the Board of year 2000 compliance status: we have successfully completed
THE FUND the testing of all of our mission-critical systems.
APPEARS HERE] Earlier this year, AIM participated in an industrywide
test that gave us a chance to see how our technology systems
might be affected by the changeover to the year 2000 (Y2K).
Everything went as well as we had hoped; in general, the
industry sailed through the testing process with flying
colors. The financial industry has been seen as a leader in
planning for year 2000 concerns. Thus, it was no surprise to
most participants that the test was an overwhelming success.
The general purpose of the process was to test
electronic interfaces among financial industry members in the United States and
to follow transactions through a typical trading cycle--from order entry to the
settlement process. Investment banks, broker-dealers, custodian banks and mutual
fund companies all worked together to make this possible. Approximately 400
firms were involved in the testing; AIM was one of 70 asset managers.
TEST RESULTS EXCELLENT
During the testing process, thousands of transactions were submitted and
approximately 260,000 steps were tested. Of those, only a handful experienced
minor glitches--just 0.02% of the total number of transactions. All problems
were worked through quickly before the hypothetical trades were settled. Of
course, AIM will keep testing and planning throughout 1999 as a precaution.
AIM'S INTERNAL EFFORTS CONTINUE
As you know from our previous communications to you, AIM has been addressing the
year 2000 issue for several years. Now that we have finished adjusting our
applications and systems, our focus for the rest of 1999 is to continue
monitoring the year 2000 readiness status of outside sources we're linked to
electronically. On the investment side, our portfolio management staff is
continually evaluating the Y2K preparedness of the domestic and foreign
companies in which we invest.
We feel that our preparations for 2000 are very comprehensive, and the
industrywide testing showed that our colleagues in the financial industry are
also working hard to be ready for the new year. We do not think shareholders
need to take any extraordinary measures with their investments to prepare for
2000. However, if you have any lingering concerns, it may reassure you to know
that AIM is finalizing contingency plans that will be ready if necessary. Our
plans will give AIM employees guidelines to follow for a wide variety of
situations.
For a more comprehensive discussion of our Y2K efforts and for periodic
updates, please visit our Web site, www.aimfunds.com.
We are pleased to send you this report covering your fund's performance over
the last six months. If you have any questions or comments, please contact our
Client Services department at 800-959-4246, or e-mail your inquiry to us at
[email protected]. You can access information about your account through our
automated AIM Investor Line at 800-246-5463 or at our Web site.
Thank you for your continued participation in The AIM Family of
Funds--Registered Trademark--. We appreciate your business.
Sincerely,
/s/ CHARLES T. BAUER
Charles T. Bauer
Chairman
A I M Advisors, Inc.
PLEASE NOTE THAT THE INFORMATION ABOUT THE YEAR 2000 IN THIS LETTER IS DEEMED
AIM'S YEAR 2000 READINESS DISCLOSURE.
--------------------------------------
THE FINANCIAL INDUSTRY
HAS BEEN SEEN AS A
LEADER IN PLANNING FOR
YEAR 2000 CONCERNS.
--------------------------------------
AIM GLOBAL TRENDS FUND
<PAGE> 4
SEMIANNUAL REPORT / MANAGERS' OVERVIEW
MARKET REBOUND SPURS FUND PERFORMANCE
HOW DID AIM GLOBAL TRENDS FUND PERFORM DURING THE PAST SIX MONTHS?
The fund reported strong returns of 13.87% for Class A shares, 13.58% for Class
B shares and 13.60% for Class C shares as of June 30, 1999. These returns are at
net asset value and exclude sales charges. The fund's Advisor Class shares
returned 14.24% for the same period. With this performance, the fund out-paced
the 10.21% return of its benchmark, the MSCI All Countries World Index.
The fund is a blend of six AIM global theme funds which invest in industry
groups tied together by an economic or social theme. Managers of AIM Global
Trends Fund allocate its assets among the six theme funds according to industry
weightings in the MSCI All Countries World Index. (Please see the sidebar on
page 3 for an explanation of changes in the fund's investment strategy.)
--------------------------------------------
CONSUMER-PRODUCTS AND SERVICES
COMPANIES CONTINUE TO BE
EXCITING PLACES TO INVEST.
--------------------------------------------
===============================================================================
PORTFOLIO OF INVESTMENTS
As of 6/30/99
PERCENTAGE OF NET ASSETS
AIM Global Consumer Products and Services Fund
32.13%
AIM Global Financial Services Fund
19.99%
AIM Global Infrastructure Fund (Pie Chart)
15.42%
AIM Global Telecommunications and Technology Fund
12.43%
AIM Global Health Care Fund
10.69%
AIM Global Resources Fund
9.70%
===============================================================================
WHAT WERE THE MAJOR TRENDS IN THE WORLD MARKETS?
Global markets rebounded during late 1998, when the U.S. Federal Reserve Board
cut domestic interest rates. The move buoyed stocks and halted a global market
decline brought on by economic problems in developing markets. In the second
quarter of 1999, the Dow crossed the 11,000 threshold, and the markets broadened
to include stocks across a wide spectrum of sectors and market-capitalizations.
The U.S. economy remained strong, with stable interest rates, low inflation
and low unemployment. In January, 11 European countries introduced the euro as
their new common currency. While the euro started strong against the dollar, it
weakened as it became clear that the United States was growing much faster than
Europe. Economists are concerned about Europe's outlook because of widely
varying growth rates among the euro-zone countries.
Conditions improved in emerging markets during the reporting period. Asia
and Latin America suffered major problems last year, including currency
devaluation and recession. Signs of recovery appeared in early 1999, and many
investors expect Japan and the rest of Asia to emerge from recession this year.
Latin American currencies are stabilizing and reducing the investment risk in
that region.
YOUR LARGEST HOLDING WAS IN AIM GLOBAL CONSUMER PRODUCTS AND SERVICES FUND. WHAT
WERE SOME OF THE MAJOR TRENDS AFFECTING THIS FUND?
Consumer-products and services companies continue to be exciting places to
invest. During the reporting period, AIM Global Consumer Products and Services
Fund remained diversified across a broad spectrum of industries, including
retailers, technology, food chains and broadcasters.
In the United States, low unemployment, rising wages and subdued inflation
bolstered consumer confidence, and that was great news for the nation's
consumer-products companies and retailers.
Wal-Mart, the world's largest retailer, was one of the fund's top holdings.
At the end of its fiscal year on January 31, 1999, the company had more than
3,000 stores in the United States and Canada and another 562 outlets in other
countries. In May, the company reported record earnings for the first quarter of
its fiscal year.
Tandy, another top holding, owns 7,000 Radio Shacks in the United States and
Canada. The retailer benefited from the strong demand for electronics products.
We believe market conditions for consumer stocks will remain strong for the
rest of the year.
MANY FINANCIAL STOCKS REBOUNDED IN 1999. HOW DID THIS AFFECT AIM GLOBAL
FINANCIAL SERVICES FUND?
We bought many of these stocks at depressed prices during the market downturn,
and their recovery greatly contributed to the fund's performance.
During the reporting period, U.S. economic growth, stable interest rates and
falling personal bankruptcy rates made credit-card banks the place to be. Fund
See important fund and index disclosures inside front cover.
AIM GLOBAL TRENDS FUND
2
<PAGE> 5
SEMIANNUAL REPORT / MANAGERS' OVERVIEW
----------------------------------------------
THE FINANCIAL SECTOR'S AVERAGE
EARNINGS GROWTH DURING THE REST OF
THE YEAR MAY EXCEED OVERALL
MARKET EARNINGS GROWTH.
----------------------------------------------
holdings included Citigroup, Providian Financial and Capital One Financial.
Earnings have been higher than expected in the insurance industry. One of
our holdings is insurance powerhouse AIG. Its acquisition of annuities company
SunAmerica, effective January 1, 1999, gave AIG a foothold in the worldwide
retirement-savings business. AIG's stock rose about 30% over the reporting
period.
The financial sector's average earnings growth during the rest of the year
may exceed overall market earnings growth. If that happens, financial stocks
could outperform the market as a whole.
HOW DID AIM GLOBAL INFRASTRUCTURE FUND PERFORM?
Our telecommunications, construction, manufacturing and oil stocks performed
well over the six-month reporting period. In April, cyclical stocks posted one
of their best one-month gains ever. These economically sensitive stocks include
housing, airlines, railroads and cement companies.
We added to our telecommunications holdings, including long-distance carrier
MCI WorldCom and Baby Bells SBC Communications and Bell Atlantic.
Other stocks we favored included United Technologies Corp., a manufacturer
of elevators, air conditioners and other equipment. Our second-largest holding,
Enron, is the largest natural-gas company in the United States. Our largest
European holdings included Mannesmann, Germany's largest cellular-phone company,
and Nokia of Finland, the world's largest wireless-phone company.
We expect cyclicals to continue to show significant strength in the short
term. We are focusing on areas that show the strongest earnings
potential--airlines, housing, railroads and cement companies.
WHAT RECENT CHANGES HAVE THERE BEEN IN AIM GLOBAL TELECOMMUNICATIONS AND
TECHNOLOGY FUND?
The fund gained a new management team in February to implement an expanded
strategy. We have broadened its portfolio to include more technology. On June 1,
1999, the word "technology" was added to the fund's name to reflect this
strategy. (Formerly, the fund was called AIM Global Telecommunications Fund.)
The fund's top holdings changed significantly since our last report. As of
June 30, 1999, our top names included America Online, the world's leading
Internet provider; Cisco, a leading U.S. maker of networking equipment for the
Internet; and MCI WorldCom, the world's second-largest long-distance company.
We sold the fund's emerging-markets holdings and have changed our portfolio
weightings to roughly 75% domestic and 25% international. This weighting
reflects the strength of the U.S. telecommunications industry. We are investing
in larger companies because they best fit into the fund's growth style.
WHAT WERE THE MAJOR TRENDS FOR AIM GLOBAL HEALTHCARE FUND?
The fund's core holdings consisted of the stocks of large pharmaceutical
companies such as Warner-Lambert, augmented by the stocks of smaller firms
expected to experience strong earnings growth. Companies falling into this
second category included Amgen, a biotechnology company, and Guidant, a medical
device company.
Warner-Lambert continued to benefit from strong sales of its
cholesterol-lowering agent, Lipitor; its anti-convulsant medication, Neurontin;
and its new anti-depressant, Celexa. The company reported record earnings for
the most recent quarter.
Amgen, one of the fund's top holdings, experienced impressive earnings
growth largely because of strong sales of Epogen, an anemia drug, and Neupogen,
a cancer treatment.
We remain optimistic about health-care stocks. Regardless of economic
trends, demand for medical services and products is likely to increase as the
population ages.
HOW DID AIM GLOBAL RESOURCES PERFORM?
The fund rebounded strongly, spurred by a recovery in oil and precious metals
prices. In March, OPEC announced a deal to cut oil production in hopes of
bringing supply and demand in line. By the end of June, oil prices rose to their
highest level in 19 months. The fund's top oil holdings included Total S.A. and
Elf Aquitaine, two French oil companies locked in a hostile takeover battle.
Shortly after the close of the reporting period, France's largest oil company,
Total, launched a $44 billion bid for rival Elf Aquitaine, the No. 2 French oil
producer. If completed, the merger would create the world's fourth-largest oil
company.
At this point, it is still difficult to say whether commodities have made a
lasting turnaround. Given the imbalance of supply and demand in the
natural-resources sector, we remain cautious about 1999.
WHAT IS YOUR OUTLOOK FOR GLOBAL FINANCIAL MARKETS?
We see plenty of reasons for optimism. In the United States, July 1999 marked
the 99th straight month of the current economic expansion (which began in April
1991). International markets have stabilized, leading analysts to believe the
worst is over. In general, we believe market conditions bode well for global
investing.
CHANGES IN YOUR FUND
On August 25, 1999, the fund's shareholders approved a change in the fund's
investment strategy. The fund now directly invests in U.S. and foreign stocks in
the industry sectors in which the theme funds invest. Fund managers are no
longer tied to each sector's relative proportion in the MSCI All Countries World
Index. The fund also has a new team of managers: Roger Mortimer, Derek Webb and
Michael Yellen.
See important fund and index disclosures inside front cover.
AIM GLOBAL TRENDS FUND
3
<PAGE> 6
SEMIANNUAL REPORT / FOR CONSIDERATION
CHOOSE YOUR INVESTMENT PALETTE
No two pieces of art are exactly alike. Just as an artist may use different
paints to create a piece, so does an investor use different kinds of investments
to create a portfolio. And as with art, tastes can change over time--most
investors have different goals at different stages in their lives, as well as
varying tolerance for risk. The biggest advantage mutual funds offer is the
potential for diversification. Providing funds with assorted objectives and
goals allows investors to shape their portfolios to their specific needs and
spread their risk over several different funds, rather than painting their
portfolios all one color.
GROWTH VS. INCOME
If you look at the list of AIM's retail mutual funds on the back of your fund
report, you'll notice that they are divided into different types. Two that
frequently appear are growth and income. Common stock is normally the growth
component of a mutual fund with growth as a primary or secondary objective.
Bonds are typically the income components of a mutual fund with income as a
primary or secondary objective.
Let's take a closer look at the categories into which AIM's retail mutual
funds are divided. Keep in mind that funds listed under the same category don't
necessarily have the same kind of investment strategy or portfolio, even if they
have the same objective.
DOMESTIC MUTUAL FUNDS
GROWTH FUNDS
Growth funds typically invest in common stocks of companies whose businesses are
growing. Growth companies tend to reinvest their profits toward expansion of
their potential to produce greater returns instead of paying dividends. So
growth mutual funds focus on generating capital gains--increasing the value of
the stocks they hold--rather than current income, which means they generally
don't pay regular income dividends. Growth funds usually do, however, make one
capital-gains distribution per year, when there are gains.
An increase over time in the value of a growth fund's portfolio means the
fund's value, or share price, increases over time also. Shareholders in a growth
fund, then, make money by selling their shares for more than they paid for them.
Of course, the opposite is also true--shareholders can lose money by selling
their shares for less than they paid for them. Growth funds usually range from
moderate to very aggressive, depending on the size and types of companies in
which they invest.
GROWTH AND INCOME FUNDS
A growth and income fund generally invests in common and preferred stocks and
bonds of older, more established companies that have a longer track record of
growth and paying dividends.
A typical growth and income mutual fund will pay quarterly or annual income
dividends to its shareholders. (Monthly dividends are not common.) In this way,
growth and income funds can potentially provide long-term growth of investments
and also current income. These funds tend to be more conservative than growth
funds.
INCOME FUNDS
Income funds are generally designed to provide high current income rather than
long-term growth. To that end, income funds usually invest chiefly in
interest-paying corporate and government bonds. They may also own stocks of
companies that pay regular dividends. Some income funds are more aggressive than
others. The aggressiveness of a particular fund depends not only on the kinds of
securities in which it invests, but also on the fund's sector allocation and
maturity structure.
For example, Treasury securities are considered a relatively safe investment
because they are guaranteed by the U.S. government. However, lower risk also
means lower return potential. On the other hand, lower-rated corporate bonds,
often called junk bonds, involve more risk because they are not guaranteed--they
are only as good as the companies that issue them. But the added risk also means
higher return potential.
Income funds are considered more conservative and are suited for investors
seeking income rather than growth.
(Palette Image)
AIM GLOBAL TRENDS FUND
4
<PAGE> 7
SEMIANNUAL REPORT / FOR CONSIDERATION
TAX-FREE INCOME OR MUNICIPAL FUNDS
These funds provide shareholders with current income that is tax-exempt at some
level, depending on the securities in which they invest. So municipal mutual
funds appeal to investors who are looking to reduce income that would otherwise
be subject to tax. Municipal bonds or notes, which are issued by state or local
governments, are generally exempt from federal taxes. Federal securities, like
Treasury bonds, are usually exempt from state taxes. And then there are some
securities that are exempt from both federal and state taxes.(1)
MONEY-MARKET FUNDS
A money-market fund is one of the safest types of mutual funds available because
its main goal is preserving your investment while paying current income in the
form of interest. As a result, these funds tend to appeal to investors looking
for safety, liquidity and some income from their investment. Money-market funds
invest in high-quality, short-term securities such as commercial paper and U.S.
government agency securities. Although money-market funds are not guaranteed or
insured by the U.S. government, the securities they hold are less risky than
other types of fixed-income securities. The trade-off for safety of principal
investment is a lower rate of return.(2)
INTERNATIONAL AND GLOBAL MUTUAL FUNDS
INTERNATIONAL GROWTH FUNDS
An international growth fund has the same objective as a domestic growth fund,
except it invests in stocks of companies located outside the United States.
Like their domestic counterparts, international growth funds tend to pay
distributions in the form of capital gains rather than dividends. An
international growth mutual fund might invest in a particular country, region or
continent depending on the investment strategy shown in its prospectus.
International funds carry different risks than domestic funds because most
foreign markets are not as established as the markets in the United States.
Other risks include changes in the value of the U.S. dollar compared to foreign
currencies, accounting differences, political risks and foreign regulatory
differences.
GLOBAL GROWTH, GLOBAL GROWTH AND INCOME, AND GLOBAL INCOME FUNDS
These funds are similar to their domestic equivalents in terms of their goals
and the income distributions they pay. Global funds are comparable to
international funds in that they can invest in stocks of companies outside the
United States. But global funds can also invest substantially in U.S. stocks;
international funds generally do not. The amount of a global fund's portfolio
that can be invested in the United States varies greatly from fund to fund,
according to a fund's prospectus. Global funds carry the same risks as
international funds.
SPECIALIZED FUNDS
THEME FUNDS
Theme or sector funds invest primarily in a particular industry or sector of the
economy, either domestically or globally. Theme funds are required by prospectus
to invest a certain percentage of their assets in their industry or sector of
choice under normal market conditions. As a result, theme funds present greater
risk and potential reward than more diversified funds. The types of securities
held by a theme fund determine its goal of growth and/or income.
TYPES OF FUND DISTRIBUTIONS
INCOME DIVIDENDS are paid from dividends and/or interest from securities in a
fund's portfolio. For example, if a company in which a mutual fund owns stock
distributes some of its earnings to its shareholders as a dividend, the fund
passes on those earnings to its own shareholders. Income dividends are usually
taxed as ordinary income.
CAPITAL GAINS represent the net profit realized from the growth in value of the
holdings in a fund's portfolio. These distributions are usually made once per
year. There are two types of capital gains:
o Short-term capital gains are paid from net profits gained when a mutual fund
sells stocks or bonds it has held for less than a year. Short-term capital
gains are taxed as ordinary income.
o Long-term capital gains are paid from net profits gained when a mutual fund
sells stocks or bonds it has held for more than a year. Long-term capital
gains are usually taxed at the capital-gains rate, which is typically lower
than ordinary income-tax rates.
(1) Investors in tax-free income funds still have a risk of incurring taxes on
capital-gains distributions, for example, so it's wise to see your tax advisor
before investing in such funds.
(2) There is no guarantee that a money-market fund will be able to maintain a
stable net asset value of $1.00 per share.
See the back cover for a complete list of AIM's retail mutual funds. For more
information about your fund's objective, read your fund prospectus. For more
complete information about any AIM fund(s), including sales charges and
expenses, ask your financial consultant or securities dealer for a free
prospectus(es). Please read the prospectus(es) carefully before you invest or
send money.
AIM GLOBAL TRENDS FUND
5
<PAGE> 8
SCHEDULE OF INVESTMENTS
June 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
ADVISOR CLASS MARKET
SHARES VALUE
<S> <C> <C>
AIM GLOBAL THEME FUNDS-100.36%
AIM Global Consumer Products and Services Fund-32.13% 452,637 $13,289,426
- -----------------------------------------------------------------------------------------
AIM Global Financial Services Fund-19.99% 351,969 8,267,764
- -----------------------------------------------------------------------------------------
AIM Global Health Care Fund-10.69% 169,771 4,420,826
- -----------------------------------------------------------------------------------------
AIM Global Infrastructure Fund-15.42% 397,629 6,377,976
- -----------------------------------------------------------------------------------------
AIM Global Resources Fund-9.70% 310,685 4,010,947
- -----------------------------------------------------------------------------------------
AIM Global Telecommunications and Technology Fund-12.43% 210,397 5,142,105
- -----------------------------------------------------------------------------------------
Total Theme Fund Investments (Cost $34,878,204) 41,509,044
=========================================================================================
TOTAL INVESTMENTS-100.36% 41,509,044
=========================================================================================
LIABILITIES LESS OTHER ASSETS-(0.36%) (147,754)
=========================================================================================
NET ASSETS-100.00% $41,361,290
=========================================================================================
</TABLE>
See Notes to Financial Statements.
6
<PAGE> 9
STATEMENT OF ASSETS AND LIABILITIES
June 30, 1999
(Unaudited)
<TABLE>
<S> <C>
ASSETS:
Investments, at market value
(cost $34,878,204) $41,509,044
- ---------------------------------------------------------
Receivables for fund shares sold 62,328
- ---------------------------------------------------------
Other assets 42
- ---------------------------------------------------------
Total assets 41,571,414
- ---------------------------------------------------------
LIABILITIES:
Payable for fund shares reacquired 123,590
- ---------------------------------------------------------
Accrued distribution fees 86,534
- ---------------------------------------------------------
Total liabilities 210,124
- ---------------------------------------------------------
Net assets applicable to shares outstanding $41,361,290
- ---------------------------------------------------------
NET ASSETS:
Class A $16,491,928
=========================================================
Class B $23,587,023
=========================================================
Class C $ 304,613
=========================================================
Advisor Class $ 977,726
=========================================================
SHARES OUTSTANDING:
Class A 1,263,599
=========================================================
Class B 1,819,943
=========================================================
Class C 23,520
=========================================================
Advisor Class 74,756
=========================================================
Class A:
Net asset value and redemption price per
share $ 13.05
- ---------------------------------------------------------
Offering price per share:
(Net asset value of $13.05 / 95.25%) $ 13.70
=========================================================
Class B:
Net asset value and offering price per
share $ 12.96
=========================================================
Class C:
Net asset value and offering price per
share $ 12.95
=========================================================
Advisor Class:
Net asset value, redemption and offering
price per share $ 13.08
=========================================================
</TABLE>
STATEMENT OF OPERATIONS
For the six months ended June 30, 1999
(Unaudited)
<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest $ 17
- ---------------------------------------------------------
Total investment income 17
- ---------------------------------------------------------
EXPENSES:
Distribution fees -- Class A 41,207
- ---------------------------------------------------------
Distribution fees -- Class B 118,347
- ---------------------------------------------------------
Distribution fees -- Class C 1,240
- ---------------------------------------------------------
Interest 1,926
- ---------------------------------------------------------
Total expenses 162,720
- ---------------------------------------------------------
Net investment income (loss) (162,703)
- ---------------------------------------------------------
REALIZED AND UNREALIZED GAIN FROM INVESTMENT
SECURITIES:
Net realized gain from investment securities 170,712
- ---------------------------------------------------------
Change in net unrealized appreciation of:
Investment securities 5,332,390
- ---------------------------------------------------------
Net gain from investment securities 5,503,102
- ---------------------------------------------------------
Net increase in net assets resulting from
operations $5,340,399
=========================================================
</TABLE>
See Notes to Financial Statements.
7
<PAGE> 10
STATEMENT OF CHANGES IN NET ASSETS
For the six months ended June 30, 1999 and the year ended December 31, 1998
(Unaudited)
<TABLE>
<CAPTION>
JUNE 30, DECEMBER 31,
1999 1998
----------- ------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss) $ (162,703) $ (226,913)
- -------------------------------------------------------------------------------------------
Net realized gain (loss) from investment securities 170,712 (1,162,416)
- -------------------------------------------------------------------------------------------
Change in net unrealized appreciation of investment
securities 5,332,390 4,092,846
- -------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 5,340,399 2,703,517
- -------------------------------------------------------------------------------------------
Distributions to shareholders from net investment income:
Class A -- (26,011)
- -------------------------------------------------------------------------------------------
Advisor Class -- (5,762)
- -------------------------------------------------------------------------------------------
Distributions to shareholders from net realized gains on
investment securities:
Class A -- (219,151)
- -------------------------------------------------------------------------------------------
Class B -- (311,471)
- -------------------------------------------------------------------------------------------
Class C -- (2,998)
- -------------------------------------------------------------------------------------------
Advisor Class -- (9,683)
- -------------------------------------------------------------------------------------------
Share transactions-net:
Class A (3,481,932) 1,720,631
- -------------------------------------------------------------------------------------------
Class B (5,002,080) 5,216,553
- -------------------------------------------------------------------------------------------
Class C 24,243 252,965
- -------------------------------------------------------------------------------------------
Advisor Class 33,537 (440,481)
- -------------------------------------------------------------------------------------------
Net increase (decrease) in net assets (3,085,833) 8,878,109
- -------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 44,447,123 35,569,014
- -------------------------------------------------------------------------------------------
End of period $41,361,290 $44,447,123
==========================================================================================
NET ASSETS CONSIST OF:
Shares of beneficial interest $36,152,574 $44,578,806
- -------------------------------------------------------------------------------------------
Undistributed net investment income (loss) (160,390) 2,313
- -------------------------------------------------------------------------------------------
Undistributed net realized gain (loss) from investment
securities (1,261,734) (1,432,446)
- -------------------------------------------------------------------------------------------
Unrealized appreciation of investment securities 6,630,840 1,298,450
- -------------------------------------------------------------------------------------------
$41,361,290 $44,447,123
==========================================================================================
</TABLE>
NOTES TO FINANCIAL STATEMENTS
June 30, 1999
(Unaudited)
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES
AIM Global Trends Fund (the "Fund"), is a diversified series of AIM Series Trust
(the "Trust"). The Trust is a Delaware business trust and is registered under
the Investment Company Act of 1940, as amended ("1940 Act"), as an open-end
management investment company. The fund invests substantially all of its assets
in Advisor Class shares of the AIM theme mutual funds: AIM Global Consumer
Products and Services Fund; AIM Global Financial Services Fund; AIM Global
Health Care Fund; AIM Global Infrastructure Fund; AIM Global Resources Fund; and
AIM Global Telecommunications and Technology Fund (collectively, the "Underlying
Theme Funds").
The Fund currently offers four different classes of shares: Class A shares,
Class B shares, Class C shares and Advisor Class shares. Class A shares are sold
with a front-end sales charge. Class B shares and Class C shares are sold with a
contingent deferred sales charge. Class C shares commenced sales on May 3, 1999.
Advisor Class shares are sold without a sales charge. Matters affecting each
class will be voted on exclusively by the shareholders of such class.
Information presented in these financial statements pertains only to the Fund.
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and
8
<PAGE> 11
liabilities at the date of the financial statements and the reported amounts of
income and expenses during the reporting period. Actual results could differ
from those estimates. The following is a summary of significant accounting
policies in conformity with generally accepted accounting principles
consistently followed by the Fund in the preparation of the financial
statements.
A. Portfolio Valuation -- Investments of the Fund are valued based on the
closing net asset value of Advisor Class shares of each Underlying Theme
Funds on the day of valuation, and short-term investments with a maturity of
60 days or less are valued at amortized cost which approximates market value.
B. Securities Transactions, Investment Income and Distributions -- Securities
transactions are accounted for on a trade date basis. Realized gains or
losses on sales are computed on the basis of specific identification of the
securities sold. Interest income is recorded as earned from settlement date
and is recorded on the accrual basis. Dividend income and distributions to
shareholders are recorded on the ex-dividend date. Such distributions are
declared and paid annually.
C. Federal Income Taxes -- The Fund intends to comply with the requirements of
the Internal Revenue Code necessary to qualify as a regulated investment
company and, as such, will not be subject to federal income taxes on
otherwise taxable income (including net realized capital gains) which is
distributed to shareholders. Therefore, no provision for federal income taxes
is recorded in the financial statements. The Fund has a capital loss
carryforward of $731,153 as of December 31, 1998 (which may be carried
forward to offset future taxable gains, if any) which expires, if not
previously utilized, in the year 2006.
D. Expenses -- Distribution and transfer agency expenses directly attributable
to a class of shares are charged to that class' operations.
NOTE 2-ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES
A I M Advisors, Inc. ("AIM") is the Fund's investment manager and administrator.
AIM as investment manager and administrator bears all expenses of the Fund
(other than expenses reimbursed pursuant to the Fund's Rule 12b-1 plans of
distribution and non-recurring and extraordinary expenses of the Fund.) The
Fund, as a shareholder in the Underlying Theme Funds, indirectly bears its
proportionate share of any investment management and other expenses paid by the
Underlying Theme Funds. AIM also has undertaken to limit the Underlying Theme
Funds' expenses (exclusive of brokerage commissions, taxes, interest and
extraordinary expenses) to a maximum annual rate of 1.50% of the average daily
net assets of the Underlying Theme Funds' Advisor Class shares.
The Trust has entered into master distribution agreements with A I M
Distributors, Inc. ("AIM Distributors") to serve as the distributor for the
Class A, Class B, Class C and Advisor Class shares of the Fund. The Trust has
adopted distribution plans pursuant to Rule 12b-1 under the 1940 Act with
respect to the Fund's Class A shares and Class C shares (the "Class A and C
Plan"), and the Fund's Class B shares (the "Class B Plan") (collectively, the
"Plans"). The Fund, pursuant to the Class A and C Plan, pays AIM Distributors
compensation at an annual rate of 0.50% of the average daily net assets of the
Class A shares and 1.00% of the average daily net assets of the Class C shares.
The Fund pursuant to the Class B Plan, pays AIM Distributors compensation at an
annual rate of 1.00% of the average daily net assets of the Class B shares. Of
these amounts, the Fund may pay a service fee of 0.25% of the average daily net
assets of the Class A, Class B or Class C shares to selected dealers and
financial institutions who furnish continuing personal shareholder services to
their customers who purchase and own the appropriate class of shares of the
Fund. Any amounts not paid as a service fee under the Plans would constitute an
asset-based sales charge. The Plans also impose a cap on the total sales
charges, including asset-based sales charges that may be paid by the respective
classes. During the six months ended June 30, 1999, the Class A, Class B and
Class C shares paid AIM Distributors $41,207, $118,347 and $1,240, respectively,
as compensation under the Plans.
AIM Distributors received commissions of $1,956 from sales of the Class A
shares of the Fund during the six months ended June 30, 1999. Such commissions
are not an expense of the Fund. They are deducted from, and are not included in,
the proceeds from sales of Class A shares. During the six months ended June 30,
1999, AIM Distributors received $1,121 in contingent deferred sales charges
imposed on redemptions of Fund shares. Certain officers and trustees of the
Trust are officers and directors of AIM, AIM Distributors and AFS.
NOTE 3-PURCHASES AND SALES
For the six months ended June 30, 1999, purchases and sales, other than
short-term investments, of the Underlying Theme Funds by the Fund, are as
follows:
<TABLE>
<CAPTION>
AIM GLOBAL PURCHASES SALES
- --------------------------------------- ---------- -----------
<S> <C> <C>
Consumer Products and Services Fund $ 84,054 $ 2,966,726
- -----------------------------------------------------------------
Telecommunications and Technology Fund 942,012 1,071,535
- -----------------------------------------------------------------
Financial Services Fund 53,707 2,701,542
- -----------------------------------------------------------------
Resources Fund 29,240 856,123
- -----------------------------------------------------------------
Health Care Fund 28,051 1,110,714
- -----------------------------------------------------------------
Infrastructure Fund 311,219 1,459,575
- -----------------------------------------------------------------
$1,448,283 $10,166,215
=================================================================
</TABLE>
9
<PAGE> 12
NOTE 4-SHARE INFORMATION
At June 30, 1999, there were an unlimited number of shares of beneficial
interest authorized, at no par value. Changes in the Fund's shares outstanding
during six months ended June 30, 1999 and the year ended December 31, 1998 were
as follows:
<TABLE>
<CAPTION>
JUNE 30, DECEMBER 31,
1999 1998
---------------------- -----------------------
SHARES AMOUNT SHARES AMOUNT
-------- ----------- --------- -----------
<S> <C> <C> <C> <C>
Sold:
Class A 80,476 $ 981,738 952,323 $10,681,667
- ------------------------------------------------------------------------
Class B 72,297 862,364 1,302,574 14,551,138
- ------------------------------------------------------------------------
Class C 5,751 71,446 35,723 397,022
- ------------------------------------------------------------------------
Advisor Class 13,574 163,192 29,946 324,974
- ------------------------------------------------------------------------
Issued as reinvestment
of dividends:
Class A -- -- 22,552 245,281
- ------------------------------------------------------------------------
Class B -- -- 26,664 289,152
- ------------------------------------------------------------------------
Class C -- -- 265 2,876
- ------------------------------------------------------------------------
Advisor Class -- -- 1,418 15,444
- ------------------------------------------------------------------------
Reacquired:
Class A (372,337) (4,463,670) (843,563) (9,206,317)
- ------------------------------------------------------------------------
Class B (492,764) (5,864,444) (894,609) (9,623,737)
- ------------------------------------------------------------------------
Class C (4,096) (47,203) (14,123) (146,933)
- ------------------------------------------------------------------------
Advisor Class (10,508) (129,655) (76,261) (780,899)
- ------------------------------------------------------------------------
(707,607) $(8,426,232) 542,909 $ 6,749,668
========================================================================
</TABLE>
NOTE 5-BANK BORROWINGS
The Fund is a participant in a committed line of credit facility with a
syndicate administered by The Chase Manhattan Bank. The Fund may borrow up to
the lesser of (i) $975,000,000 or (ii) the limits set by its prospectus for
borrowings. The Fund and other funds advised by AIM which are parties to the
line of credit may borrow on a first come, first served basis. During the six
months ended June 30, 1999, the Fund did not borrow under the line of credit
agreement. The funds which are party to the line of credit are charged a
commitment fee of 0.09% on the unused balance of the committed line. The
commitment fee is allocated among the funds based on their respective average
net assets for the period.
NOTE 6-FINANCIAL HIGHLIGHTS
Shown below are the financial highlights for a share of Class A, Class B and
Advisor Class shares outstanding during the six months ended June 30, 1999, the
year ended December 31, 1998 and the period September 15, 1997 (date sales
commenced) through December 31, 1997; and for a share of Class C outstanding
during the six months ended June 30, 1999 and the year ended December 31, 1998.
<TABLE>
<CAPTION>
Class A
----------------------------------
December 31,
June 30, -----------------
1999 1998(a) 1997(a)
-------- ------- -------
<S> <C> <C> <C>
Net asset value, beginning of period $ 11.46 $ 10.63 $ 11.43
- ------------------------------------------------------------ ------- ------- -------
Income from investment operations:
Net investment income (loss) (0.03) (0.02) (0.01)
- ------------------------------------------------------------ ------- ------- -------
Net realized and unrealized gain (loss) on investments 1.62 1.01 (0.31)
- ------------------------------------------------------------ ------- ------- -------
Net increase (decrease) from investment operations 1.59 0.99 (0.32)
- ------------------------------------------------------------ ------- ------- -------
Distributions to shareholders:
From net investment income -- (0.02) (0.48)
- ------------------------------------------------------------ ------- ------- -------
From net realized gains -- (0.14) --
- ------------------------------------------------------------ ------- ------- -------
Total distributions -- (0.16) (0.48)
- ------------------------------------------------------------ ------- ------- -------
Net asset value, end of period $ 13.05 $ 11.46 $ 10.63
============================================================ ======= ======= =======
Total return(b) 13.87% 9.37% 2.68%
============================================================ ======= ======= =======
Ratios and supplemental data:
Net assets, end of period (in 000s) $16,492 $17,822 $15,145
============================================================ ======= ======= =======
Ratio of expenses to average net assets, excluding interest
expense 0.50%(c) 0.50% 0.50%(d)
============================================================ ======= ======= =======
Ratio of net investment (loss) to average net assets (0.51)%(c) (0.21)% (0.35)%(d)
============================================================ ======= ======= =======
Portfolio turnover rate 3% 28% 1%
============================================================ ======= ======= =======
</TABLE>
(a) Calculated using average shares outstanding.
(b) Does not deduct sales charges and is not annualized for periods less than
one year.
(c) Ratios are annualized and based on average net assets of $16,619,288.
(d) Annualized.
10
<PAGE> 13
NOTE 6-FINANCIAL HIGHLIGHTS-(CONTINUED)
<TABLE>
<CAPTION>
Class B Class C Advisor Class
---------------------------- ----------------------- --------------------------
December 31, December 31,
June 30, ----------------- June 30, December 31, June 30, ---------------
1999 1998(a) 1997(a) 1999 1998(a) 1999 1998(a) 1997
-------- ------- ------- -------- ------------ -------- ------- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 11.41 $ 10.62 $ 11.43 $11.40 $10.62 $11.45 $10.64 $11.43
- ------------------------------------------ ------- ------- ------- ------ ------ ------ ------ ------
Income from investment operations:
Net investment income (loss) (0.07) (0.07) (0.02) (0.05) (0.08) -- 0.03 0.01
- ------------------------------------------ ------- ------- ------- ------ ------ ------ ------ ------
Net realized and unrealized gain (loss)
on investments 1.62 1.00 (0.32) 1.60 1.00 1.63 1.00 (0.31)
- ------------------------------------------ ------- ------- ------- ------ ------ ------ ------ ------
Net increase (decrease) from
investment operations 1.55 0.93 (0.34) 1.55 0.92 1.63 1.03 (0.30)
- ------------------------------------------ ------- ------- ------- ------ ------ ------ ------ ------
Distributions to shareholders:
From net investment income -- -- (0.47) -- -- -- (0.08) (0.49)
- ------------------------------------------ ------- ------- ------- ------ ------ ------ ------ ------
From net realized gains -- (0.14) 0 -- (0.14) -- (0.14) 0
- ------------------------------------------ ------- ------- ------- ------ ------ ------ ------ ------
Total distributions -- (0.14) (0.47) -- (0.14) -- (0.22) (0.49)
- ------------------------------------------ ------- ------- ------- ------ ------ ------ ------ ------
Net asset value, end of period $ 12.96 $ 11.41 $ 10.62 $12.95 $11.40 $13.08 $11.45 $10.64
========================================== ======= ======= ======= ====== ====== ====== ====== ======
Total return(b) 13.58% 8.83% (2.83)% 13.60% 8.94% 14.24% 9.80% (2.51)%
========================================== ======= ======= ======= ====== ====== ====== ====== ======
Ratios and supplemental data:
Net assets, end of period (in 000s) $23,587 $25,555 $19,184 $305 $249 $ 978 $ 821 $1,241
========================================== ======= ======= ======= ====== ====== ====== ====== ======
Ratio of expenses to average net assets,
excluding interest expense 1.00%(c) 1.00% 1.00%(d) 1.00%(c) 1.00%(d) 0.00%(c) 0.00% 0.00%(d)
========================================== ======= ======= ======= ====== ====== ====== ====== ======
Ratio of net investment income (loss) to
average net assets (1.01)%(c) (0.71)% (0.85)%(d) (1.01)%(c) (0.71)%(d) (0.01)%(c) 0.28% 0.15%(d)
========================================== ======= ======= ======= ====== ====== ====== ====== ======
Portfolio turnover rate 3% 28% 1% 3% 28% 3% 28% 1%
========================================== ======= ======= ======= ====== ====== ====== ====== ======
</TABLE>
(a) Calculated using average shares outstanding.
(b) Does not deduct sales charges and is not annualized for periods less than
one year.
(c) Ratios are annualized and based on average net assets of $23,865,516,
$250,075 and $906,230 for Class B, Class C and Advisor Class, respectively.
(d) Annualized.
NOTE 7-SUBSEQUENT EVENT
The Board of Trustees of AIM Series Trust unanimously approved on June 15, 1999,
a change to the fundamental investment restrictions of the Fund. On August 25,
1999, a Special Meeting of Shareholders approved the Plan (see Proxy Results).
As a result of Shareholders' and Board of Trustee's approval, effective August
27, 1999, the Fund will redeem its investments in the Underlying Theme Funds (as
defined in Note 1) and directly invest primarily in equity securities of U.S.
and foreign issuers in any or all of the global industry sectors in which the
Underlying Theme Funds invest. This will enable the Fund to allocate assets to
industries and industry groups that it believes provides the most advantageous
investment opportunities at a given time. The restructuring does not involve any
change to the Fund's name or investment objective, nor can there be any
assurance that the restructuring will lead to better Fund performance.
PROXY RESULTS (UNAUDITED)
A Special Meeting of Shareholders of the Fund was held on August 25, 1999 at 11
Greenway Plaza, Suite 100, Houston, TX 77046. The meeting was held for the
following purposes:
(1) To approve a new investment advisory agreement for the Fund;
(2) To approve changes to the fundamental investment restrictions of the Fund;
(3) To elect a Trustee; and
(4) To ratify the selection of independent public accountants.
The results of the proxy solicitation on the above matters were as follows:
<TABLE>
<CAPTION>
Votes Votes Withheld/
Matter For Against Abstentions
- ------ --------- ------- -----------
<S> <C> <C> <C> <C>
(1) Approval of a new investment advisory agreement for the
Fund. 1,371,737 50,002 440,384*
(2a) Modification of the fundamental restriction on
concentration. 1,360,627 55,223 446,273*
(2b) Modification of the fundamental restriction on portfolio
diversification. 1,368,064 48,189 445,870*
(2c) Addition of a fundamental policy on investments in
investment companies. 1,368,574 47,138 446,411*
(2d) Modification of the fundamental restriction on issuing
senior securities and borrowing money. 1,368,051 47,120 446,952*
(2e) Modification of the fundamental restriction on underwriting
securities. 1,370,708 45,367 446,048*
(2f) Modification of the fundamental restriction on real estate
investments. 1,365,865 48,684 447,574*
(2g) Modification of the fundamental restriction on making loans. 1,361,342 50,601 450,180*
(3) Robert H. Graham as Trustee. 1,795,672 1,077 65,374
(4) Ratification of the selection of PricewaterhouseCoopers LLP
as independent public accountants. 1,763,343 16,981 81,797
</TABLE>
* Includes Broker Non-Votes
11
<PAGE> 14
<TABLE>
<CAPTION>
BOARD OF TRUSTEES OFFICERS OFFICE OF THE FUND
<S> <C> <C>
C. Derek Anderson Robert H. Graham 11 Greenway Plaza
President, Plantagenet Capital Chairman and President Suite 100
Management, LLC (an investment Houston, TX 77046
partnership); Chief Executive Officer, Dana R. Sutton
Plantagenet Holdings, Ltd. Vice President and Treasurer INVESTMENT MANAGER
(an investment banking firm)
Samuel D. Sirko A I M Advisors, Inc.
Frank S. Bayley Vice President & Secretary 11 Greenway Plaza
Partner, law firm of Suite 100
Baker & McKenzie Melville B. Cox Houston, TX 77046
Vice President
Robert H. Graham TRANSFER AGENT
President and Chief Executive Officer, Gary T. Crum
A I M Management Group Inc. Vice President A I M Fund Services, Inc.
P.O. Box 4739
Arthur C. Patterson Carol F. Relihan Houston, TX 77210-4739
Managing Partner, Accel Partners Vice President
(a venture capital firm) CUSTODIAN
Mary J. Benson
Ruth H. Quigley Assistant Vice President and State Street Bank and Trust Company
Private Investor Assistant Treasurer 225 Franklin Street
Boston, MA 02110
Sheri Morris
Assistant Vice President and COUNSEL TO THE FUND
Assistant Treasurer
Kirkpatrick & Lockhart LLP
Nancy L. Martin 1800 Massachusetts Avenue, N.W.
Assistant Secretary Washington, D.C. 20036-1800
Ofelia M. Mayo COUNSEL TO THE TRUSTEES
Assistant Secretary
Paul, Hastings, Janofsky & Walker LLP
Kathleen J. Pflueger Twenty Third Floor
Assistant Secretary 555 South Flower Street
Los Angeles, CA 90071
DISTRIBUTOR
A I M Distributors, Inc.
11 Greenway Plaza
Suite 100
Houston, TX 77046
</TABLE>
12
<PAGE> 15
AIM FUNDS(SM) MAKES INVESTING EASY
o AIM BANK CONNECTION. You can make investments in your AIM account in amounts
from $50 to $100,000 without writing a check. Once you set up this
convenient feature, AIM will draw the funds from your pre-authorized
checking account at your request.
o AUTOMATIC REINVESTMENT OF DIVIDENDS AND/OR CAPITAL GAINS. You can receive
distributions in cash, or you can reinvest them in your account without
paying a sales charge. Over time, the power of compounding can significantly
increase the value of your account.
o AUTOMATIC INVESTMENT PLAN. You can add to your account by authorizing your
AIM fund to withdraw a specified amount, minimum $50, from your bank account
on a regular schedule.
o EASY ACCESS TO YOUR MONEY. You can redeem shares of your AIM fund any day
the New York Stock Exchange is open. The value of the shares may be more or
less than their original cost depending on market conditions.
o EXCHANGE PRIVILEGE. As your investment goals change, you may exchange part
or all of your shares of one fund for shares of a different AIM fund within
the same share class. You may make up to 10 such exchanges per calendar
year.
o TAX-ADVANTAGED RETIREMENT PLANS. You can enjoy the tax advantages offered by
a variety of investment plans, including Traditional IRAs, Roth IRAs and
education IRAs, among others.
o TOLL-FREE ACCESS. Our automated AIM Investor Line, 800-246-5463, provides
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o E-MAIL ACCESS. You can contact us at [email protected] for general
information. For account information, contact us at
[email protected].
o WWW.AIMFUNDS.COM. Our award-winning Website provides account information,
shareholder education and fund performance information.
-----------------------------------
CURRENT SHAREHOLDERS
CAN CALL OUR AUTOMATED
AIM INVESTOR LINE AT
800-246-5463
FOR 24-HOUR-A-DAY
ACCOUNT INFORMATION.
-----------------------------------
<PAGE> 16
THE AIM FAMILY OF FUNDS--Registered Trademark--
<TABLE>
<S> <C> <C>
GROWTH FUNDS MONEY MARKET FUNDS A I M Management Group Inc. has provided
AIM Aggressive Growth Fund(1) AIM Money Market Fund leadership in the mutual-fund industry
AIM Blue Chip Fund AIM Tax-Exempt Cash Fund since 1976 and managed approximately
AIM Capital Development Fund $121 billion in assets for more than 6.3
AIM Constellation Fund INTERNATIONAL GROWTH FUNDS million shareholders, including
AIM Dent Demographic Trends Fund AIM Advisor International Value Fund individual investors, corporate clients,
AIM Large Cap Growth Fund AIM Asian Growth Fund and financial institutions as of
AIM Mid Cap Equity Fund(A) AIM Developing Markets Fund June 30, 1999.
AIM Select Growth Fund AIM Europe Growth Fund The AIM Family of Funds--Registered
AIM Small Cap Growth Fund(B) AIM European Development Fund Trademark-- is distributed nationwide,
AIM Small Cap Opportunities Fund AIM International Equity Fund and AIM today is the 10th-largest
AIM Value Fund AIM Japan Growth Fund mutual-fund complex in the United States
AIM Weingarten Fund AIM Latin American Growth Fund in assets under management, according to
AIM New Pacific Growth Fund Strategic Insight, an independent
GROWTH & INCOME FUNDS mutual-fund monitor.
AIM Advisor Flex Fund GLOBAL GROWTH FUNDS
AIM Advisor Large Cap Value Fund AIM Global Aggressive Growth Fund
AIM Advisor Real Estate Fund AIM Global Growth Fund
AIM Balanced Fund
AIM Basic Value Fund(C) GLOBAL GROWTH & INCOME FUNDS
AIM Charter Fund AIM Global Growth & Income Fund
AIM Global Utilities Fund
INCOME FUNDS
AIM Floating Rate Fund GLOBAL INCOME FUNDS
AIM High Yield Fund AIM Emerging Markets Debt Fund(D)
AIM High Yield Fund II AIM Global Government Income Fund
AIM Income Fund AIM Global Income Fund
AIM Intermediate Government Fund AIM Strategic Income Fund
AIM Limited Maturity Treasury Fund
THEME FUNDS
TAX-FREE INCOME FUNDS AIM Global Consumer Products and Services Fund
AIM High Income Municipal Fund AIM Global Financial Services Fund
AIM Municipal Bond Fund AIM Global Health Care Fund
AIM Tax-Exempt Bond Fund of Connecticut AIM Global Infrastructure Fund
AIM Tax-Free Intermediate Fund AIM Global Resources Fund
AIM Global Telecommunications and Technology Fund(E)
AIM Global Trends Fund(F)
</TABLE>
(1) AIM Aggressive Growth Fund reopened to new investors November 16, 1998. (A)
On September 8, 1998, AIM Mid Cap Growth Fund was renamed AIM Mid Cap Equity
Fund. (B) On September 8, 1998, AIM Small Cap Equity Fund was renamed AIM Small
Cap Growth Fund. (C) On September 8, 1998, AIM America Value Fund was renamed
AIM Basic Value Fund. (D) On September 8, 1998, AIM Global High Income Fund was
renamed AIM Emerging Markets Debt Fund. (E) On June 1, 1999, AIM Global
Telecommunications Fund was renamed AIM Global Telecommunications and
Technology Fund. (F) On September 8, 1998, AIM New Dimension Fund was renamed
AIM Global Trends Fund. For more complete information about any AIM Fund(s),
including sales charges and expenses, ask your financial consultant or
securities dealer for a free prospectus(es). Please read the prospectus(es)
carefully before you invest or send money.
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